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HomeMy WebLinkAboutOrd 301 02/08/1949 301 - AN ORDINANCE authorizing and providing for the issue of $50,000 Water Revenue Bonds of the Village of Mount Prospect, Cook County, Illinois, for the purpose of defraying the cost of improving and extending the present waterworks system of said Village, prescribing all of the details of said bonds and providing for the collection,.segregation and disposition of the revenues of the waterworks system of said Village for the purpose of paying the cost of operation and maintenance thereof, providing an adequate depreciation fund there- for, and paying the principal ana interest of said Water Revenue Bonds. * * * WHEREAS, the Village of Mount Prospeot, Cook County, Illinois, is now and has for many years last past been operating and maintaining a municipal waterworks system in and for said Village; and lh'HEREAS, it is deemed advisable, necessary and for the best interest of said Village that improvements and extensions be constructed to said existing municipal waterworks system, such improvements and extensions to oonsist of the construction and installation of a new water well to be approximately 1500 feet deep and to be located on property owned by the Village located at Kenilworth Avenue and Thayer Street in the Village of Mount Prospect, said well to oonstitute an additional source of water supply, well pumping equipment consisting of a 400 gallon per minute pump, a 75 horsepower motor and all electrical controls incident thereto and a pumping station to consist of a building with internal measurements of approximately 14 feet by 16 feet and having a height of approximately 15 feet, such pumping station to house the well pumping equipment and all accessories incident thereto, an eight inch water main to connect the additional source of supply to the existing distribution system, and together with all necessary fittings, oonneotions, appurtenances and equip- ment incident thereto, all in accordance with the detailed plans and specifications therefor heretofore approved by the President and Board of Trustees of the said,Village of ~ount Prospect and now on file in the'office of the Village Clerk for public inspec- tion; and ..2... additional bonds then proposed to be issued, and (c) an amount of principal of such addtional bonds computed by dividing the total amount of such issue by the number of years from date of issue to the final maturity date of such additional bond issue; Qd WHEREAS, the earnings of the municipal waterworks system of said Village of Mount Prospect for the last fiscal year ending July 31, 1948 have heretofore been audited Qd submitted to the President Qd Board of Trustees of~id Village of Mount Prospect and said President and Board of Trustees have heretofore found and do hereby find and determine that the revenues of said water- works system for the fiscal year ending July 31, 1948 are of such an amount that additional water revenue bonds of the Village in the amount of $50,000 may be issued within the provisions of the restrictive covenants contained in said ordinance adopted on November 1, 1944 hereinabove referred to, such additional water revenue bonds to share ratably and equally in the revenues to be derived from the operation of said waterworks system with the revenue bonds of said Village now outstanding which are payable both as to prinoipa1 thereof and interest thereon solely and only from the revenues of said waterworks syste.: !Q!, THEREFORE, Be It Ordained by the President and Board of Trustees of the Village of Mount Prospect, Cook eounty, Illinois, as follows: Section 1_ That the President and Board of Trustee~ have heretofore caused to be made an estimate of the cost of constructing necessary improvements and extensions to the existing municipal waterworks system of said Village of Jount Prospect as i I described in the preamble of this Ordinance, and all in accordanc~ with the plans and specifications therefor heretofore prepared and appr&ved by this President and Board of Trustees and now on file in the office of the Village Clerk for public inspection, and have heretofore estimated and do hereby estimate that the ~- total estimated cost of the construction of said improvements and extensions is the sum of $50,000. Section g. That the President and Board of Trustees do hereby determine the period of usefulness of said waterworks system and the improvements and 8x~ensions to be made thereto to be forty years. Section ..1. That to pay the cost of constructing such improvements and extensions to the existing waterworks system it will require the issuance of $50,000 Water Revenue Bonds bearing interest at the rate of three and one-quarter per cent (3 1/4%) per annum. Section !t. That for the purpose of defraying the cost of improving and extending the present municipally owned waterworks system of said Village of Mount Prospect as herein- J.i above described in the preamble of this ordinance, there be issue, and sold water revenue bonds of said Village, to be designated "Water Revenue Bonds", in the principal amount of $50,000, which I bonds Shall bear date of January 1, 1949, be numbe~edoonsecutivel~ from 1 to 50, incluSive, be of the denomination of $1,000 each, I I bear interest at the rate of three and one-quarter per cent (3 1/4%> per annum, payable on July 1, 1949 and semi-annually thereafter on the first days of January and July in each year and become due serially, in numerical order $1,000 on January 1 of each of the years 1950 to 1957, inclusive, and $2,000 on January 1 of each of the years 1958 to 1978, inclusive; provided, however, that said bonds numbered 23 to 50, inclusive, shall be subject to redemption prior to their matlI' i ty, at the option ot the Village, at par and acerued interest on any interest payment date on or atter Jaouary 1, 1964, in the inverse order in which they are numbered; that is to say, bond number 50 shall f:ir st be redeemed before bond numbered 49 is redeemed, and so on, continu- ing such priority of redemption as to all said bonds subject to redemption prior to maturity. Notice of its option to redeem any or all of said bonds shall be given by publication of such -4- notice at least once in a newspaper published and or general circulation in the City or Chicago, Illinois, and the date or the publication or such notice shall be not less than thirty (30) days prior to such redemption date, and any such notice shall designate the date and place or redemption or said bonds, which shall be at The Northern Trust Company in the City or Chicago, Illinois, shall designate the serial number and the aggregate principal amount of the bonds to be redeemed, and shall indicate that on the designated date of redemption said bonds will be redeemed by payment of the principal thereof and accrued interest thereon, and that from and after the designated redemption date interest in respect of said bonds so called for redemption shall cease. Section 2. Both principal and interest of said water revenue bonds shall be payable in lawful money of the United States of America at The Northern Trust Company in the City of Chicago, Illinois. Said bonds shall be signed by the President or the Village, sealed with the corporate seal of said Village, and attested by the Village Clerk, and the interest coupons attached to said bonds shall be executed by the facsimile signa- tures of said President and said Village Clerk, and said officials, by the execution of said bonds, shall adopt as and for their own proper signatures their respective facsimile signatures appearing on said coupons. Sald bonds, together with interest thereon, shall be payable solely rrom the revenues derived from the waterworks system of said Village and such bonds shall not in any event constitute an indebtedness of the Village of Mount Prospect within the meaning of any constitutional or statutory limitation. : . I Any of said bonds may be registered as to principal at any time prior to maturity in the name of the holder on the books of said Village in the office of the Village Treasurer, such registration to be noted on the reverse side of the bonds by the Village Treasurer, and thereafter the principal of such registered ~5... bonds shall be payable only to the registered holder, his legal representatives or assigns. Such registered bonds shall be transferable to the registered holder or back to bearer only upon presentation to the Village Treasurer, with a legal assign- ment duly acknowledged or approved. Registration of any of such bonds shall not affect the negotiability of the coupons thereto attached, but such coupons shall be transferable by delivery merely. Section 6. - That said bonds and coupons shall be in substantially the following form: (Form of Bond) UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTY OF COOK VILLAGE OF MOUNT PROSPECT WATER REVENUE BOND NUMBER $ KNOW ALL MEN BY THESE PRESENTS that the Village of - ..-.- ...-.- --- Mount Prospect, Cook County, Illinois, for value received, hereby promises to pay to bearer, or if this bond be registered, as. hereinafter provided, then to the registered holder hereof, solely from the water fund of the Village of Mount Prospect, as hereinafter mentioned and not otherwise, the sum of Dollars C$ >, in lawful money of the United States of America, on the first day of January, 19 , together with interest thereon from the date hereof until paid, at the rate of three and one-quarter per cent (3 1/4%> per annum, payable on July 1, 1949 and semi-annually thereafter on the first days of January and July in each year upon presentation andwrrenderof the annexed interest coupons as they severally become due. Both principal of and interest upon this bond are hereby made payable at The Northern Trust Company in the City of Chicago, Illinois. This bond is payable solely from revenues derived from -6.. the waterworks system of said Village and not otherwise, and is issued under authority of Article 78 of an Act of the General Assembly of the State of Illinois, entitled, "An Act concerning cities, villages and incorporated towns, and to repeal certain acts herein named," effective January 1, 1942, and all laws amen- datory thereof and supplemental thereto, far the purpose of paying the cost of constructing improvements and extensions to the exis- ting municipal waterworks system of the Village of Mount Prospect, and this bond does not constitute an indebtedness of said Village within any constitutional or statutory limitation. Said Village covenants that it will fix and maintain such rates for water service and collect and account for revenues from said waterworks system sufficient to promptly pay principal of and interest on this bond as the same becomes due. This bond is one of an authorized issue of Fifty Thous- and Dollars ($50,000), numbered from 1 to 50, inclusive, of the denomination of One Thousand Dollars ($1,000) each, all of like date, tenor and effect except as to number, maturity and redemp- tion privilege. Bonds numbered 23 to 50, inclusive, are redee- mable at the option of the Village, prior to maturity, at par and accrued interest, on January 1, 1964 or on any interest payment date thereafter in the inverse order in which they are numbered. That is to say, bond numbered 50 shall first be redeemed before bond numbered 49 is redeemed, and so on, continuing such priority of redemption as to all bonds so redeemable. Notice to redeem any or all of said bonds numbered 2~ to 50, inclusive, shall be given by the Village by publication of such notice at least once in a newspaper published and of general circulation in the City of Chicago, Illinois, the date of the publication of such notice to be not less than thirty (30) days prior to such redemption date, and when any or all of said bonds shall have been called for re- demption, and payment made or provided for, interest thereon shalliatBSe from and after the date so specified. Under said Act and the ordinance adopted pursuant thereto, -7- sufficient revenues from the operation of the municipal waterworks system shall be deposited in a separate fund designated as the "Water Fund" of said Village which shall be used ohly in paying the cost of operation and maintenance of such system, providing an adequate depreciation fund, and paying the principal of and interest on the bonds of such Village that are issued under authority of said Act and are payable by their terms only from the revenue of such waterworks system. It is hereby certified and recited that all acts, con- ditions and things required to be done precedent to and in the issuance of this bond have been done and have happened and have been performed in regular and due form of law, and that provision has been made for depositing in said water fund sufficient revenues received from the operation of said waterworks system to be applied in the manner as hereinabove set forth. This bond may be registered as to principal only in the name of the holder on the books of said Village in the office of the Village Treasurer, such registration to be evidenced by nota- tion of said Village Treasurer on the back hereof, after which no transfer hereof shall be valid unless made on said books and similarly noted hereon, but it may be discharged from such regis- tration by being transferred to bearer, after which it shall be transferable by delivery, but it may be again registered as before~ The registration of this bond shall not restrict the negotiability: of the coupons by delivery merely. 1! WITNESS WHEREOF said Village of Mount Prospect, Cook I County, Illinois, by its President and Board of Trustees, has caused this bond to be signed by the President of said Village, its corporate seal to be hereto affixed, and attested by the Village Clerk, and the coupons hereto attached to be signed by the fac- simile signatures of said President and said Village Clerk which officials, by the execution of this bond, do adopt as and for -8" .. their own proper signatures their respective facsimile signatures vpearing on said coupons, and this bond to be dated the first day of January, 1949. President, Village of Mount Prospect, Cook County, Illinois. Attest: Village Clerk, Village of Mount Prospect, Cook County, Illinois. (Form of Coupon) Number $ On the first day of , 19 , * (unless the bond to which this coupon'is attached has been called for paYment prior to said date as therein provided for and payment made or provided for), the Village of Mount Prospect, Cook County, Illinois, will pay to bearer Dollars ($ ) in lawful money of the United States of America out of the Water Fund of said Village at The Northern Trust Company in the City of Chicago, Illinois, being interest then due on its Water Revenue Bond dated January 1, 1949, Number . President, Village of Mount Prospect, Cook County, Illinois. Attest: Village-Clerk, Village of Mount Prospect, Cook County, Illinois. * (Refer to instructions appearing on page #10 and after the Form~f Registration.) -9... (Form for Registration as to Principal) Date of Re~istration In Whose Name Registered Signature of Village Treasurer * (The clause within the parenthesis appearing in the form of interest coupon shall be inserted in all coupons attached to bonds numbered 23 to 50, inclusive, repre- senting interest maturing after the optional date of the bond to which it is attached.) Section 7. That upon the issuance of the water revenue bonds herein provided for, the entire municipal waterworks system of said Village of Mount Prospect, for the purpose of this ordin- ance, shall be operated on a fiscal year basis commencing the first day of August and ending the last day of July of each suc- ceeding year. From and after the delivery of any bonds issued under the provisions of this ordinance, sufficient revenues from the operation of the waterworks system of said Village of Mount Prospect shall be set aside as collected and be deposited in a separate fund which is hereby created, to be designated as the "Water Fund" of the Village of Mount Prospect, which shall be used only in paying the cost of operation and maintenance of said sys- tem, providing an adequate depreciation fund, and paying the prin- cipal of and interest upon the water revenue bonds of said Village of Mount Prospect that are payable by their terms only from the revenues of said waterworks system, and such water fund shall be used only for such purposes. It is hereby determined that the amounts to be set aside in said water fund to be used for the purpose of paying interest upon and principal of said Water Revenue Bonds issued under the provisions of this ordinance, as the same become due, and in addition to the amounts required to be set aside in said water fund for the purpose of paying the principal and interest require- -10... ments on these bonds now outstanding which by their terms are payable solely from the revenues to be derived from the operation of the waterworks system of. said Village, shall be as follows: Period Year Ending Last Day of July Prine ip a1 and Interest 1949 1950 1951 1952 195.3 1954 1955 1956 1957 1958 1959 1960 1961 1962 196;3 1964 1965 1966 1967 1968 1969 1970 1971 1972 197.3 1974 1975 1976 1977 $2,625.00 2,592.50 2,560.00 2,527.50 2,495.00 2,462.50 2,430.00 2,397.50 3,365.00 ),)00.00 ),235.00 ),170.00 ),105.00 ),040.00 2,975.00 2,910.00 2, 8h.5 . 00 2,7$0.00 2,715.00 2,650.00 2,585.00 2,520.00 2,455.00 2,390.00 2,325.00 2,260.00 2,195.00 2,130.00 2,065.00 Distribution of amounts in said water fund suffioient to cover the above required sums for principal and interest of water revenue bonds authorized by this ordinanoe, for principal and interest on all outstanding water revenue bonds, and also for the purpose of paying the cost of operation, maintenance, and an ade- quate depreciation fund, shall be made monthly on the first day of each month, except that when the first day of any month shall be Sunday or a legal holiday, then such distribution shall be made on the next succeeding secular day. sat d water fund as hereinabove provided for shall be used solely and only, and is hereby pledged for the purpose of paying the principal of and interest upon the water revenue bonds of said Village of Mount Prospect that are payable by their terms only from such revenues of the waterworks -11- system, including the principal of and interest upon the water revenue bonds herein authorized to be issued, to pay the cost of operation, maintenance, and provide an adequate depreciation fund, which depreciation fund shall be accumulated at an annual rate of at least one-half of one per cent (1/2 of 1%) of the value of the waterworks system, including the improvements and extensions herein provided for. Section ~. While the bonds authorized hereunder or any of them remain outstanding or unpaid, rates charged for water shall be sufficient at all times to pay the cost of operation and main- tenance, to provide a depreciation fund, and to pay the interest on and principal of the water revenue bonds issued hereunder and all outstanding bonds heretofore authorized which by their terms are payable from the revenues of said waterworks system. And there shall be charged against all users of said water, including the Village ot Mount Prospect, such rates and amount for water service as shall be adequate to meet the requirements of this sec- tion. Compensation for services rendered the Village shall be charged against the Village and p~ment for the same from the cor- porate funds shall be made monthly into the "Water Fund" created by this ordinance as revenues derived from the operation of the waterworks system in the same manner as other revenues are required to be deposited. Section 2. Any surplus revenues derived from the opera- tion of said waterworks system shall only be used in the purchase and retirement of bonds issued by said Village, which by their terms are payable solely fram the revenues derived from the opera- tion of the water.or-ks system of said Village, or invested in United States Government securities mat~ing not more than ten years from the date of such purchase. Section 12. Any holder of a bond or bonds or any of the coupons of any bond or bonds issued hereunder may either in law or in equity, by suit, action, mandamus or other proceedings, en- -12- force or compel performance of all duties required by this ordinance, including the making and collecting of sufficient water rates for that purpose and application of income and revenue thereof. Section 1!. It is hereby covenanted and agreed that while any water revenue bonds issued hereunder are outstanding, no additional water revenue bonds shall be issued unless the revenues derived from the waterworks system for the fiscal year then next preceding were sufficient to pay all costs of operation and main- tenance, provide an adequate depreciation fund and leave a balance equal to at least one hundred ten per cent (110%) of the aggregate of (a) the principal and interest requirements for such year on all the bonds then outstanding payable from the revenues of the water- works system, (b) one year's interest on the total issue of such additional bonds then proposed to be issued, and (c) an amount of principal of such additional bonds computed by dividing the total amount of such issue by the number of years from the date of issue to the final maturity date of such additional bond issue. Section 12. The Village of Mount Prospect hereby coven- ants and agrees with the holder or holders of the bonds herein proposed to be issued, or any of them, that it will punctually perform all duties with reference to said waterworks system required by the Gonstitution and Laws of the State of Illinois, including the making and collecting of sufficient rates for water, and segregating the revenues of said waterworks system and the application thereof to the respective funds created by this ordinance, and it hereby covenants and agrees not to sell, lease, loan, mortgage or in any manner dispose of said waterworks system including any and all ex- tensions and improvements that may be made thereto until all of the ,bonds herein authorized to be issued shall have been paid in full, both principal and interest, or unless and until provision shall have been made for the payment of all bonds and interest thereon in full; and the Village further covenants and agrees with the holders of said bonds to maintain in good condition and continuously operate said waterworks system. -13- Section 11. Provisions of this ordinance shall con- stitute a contract between the Village of Mount Prospect and the holders of the bonds herein authorized to be issued, and after the I issuance of the bonds, no changes, additions or alterations of any :kind shall be made in any manner, except as herein provided, or !until such time as all of said bonds issued hereunder and the in- terest thereon shall be paid in full, or unless and until provision ishall m ve been made for the payment of all bonds and interest thereon in full. Section~. That upon the execution of said $50,000 :Water Revenue Bonds as herein provided, the same shall be delivered ito the purchaser thereof, namely, R. S. Dickson & Company, of iChicago, Illinois, upon receipt of the purchase price therefor, the Isame being the sum of par plus accrued interest from the date of isaid bonds to the date of delivery thereof, contract for the sale 'of said bonds, heretofore entered into be and the same is hereby ratified, approved and confirmed, and the proceeds of the sale of isaid bonds shall be used for the purpose of construe ting the improve-t ! . I ~ents and extensions to the existing munieipal waterworks system of i i ~he Village of Mount Prospeet in aecordance with the plans and spee- I ~fieations therefor, prepared for that purpose, heretofore approved ~y the President and Board of Trustees and now on file in the office I pf the Village Clerk and open to the inspeetion of the public. I I i Seetion12. If any section, paragraph, clause or provi- I' ~ion of this ordinanee shall be held invalid, the invalidity of sueh " i isection, paragraph, clause or provision shall not affect any of the I !other provisions of this ordinance. Section 16. In the event the amount of bonds issued is I Iless than the aggregate amount herein authorized, the amounts to be 'set aside in the Water Fund to be used for the purpose of paying I !. principal and interest of Water Revenue Bonds, as provided in ~ection 7 hereof, shall be reduced proportionately. Any accrued ~nterest or surplus of proceeds received from the sale of said bonds after payment of the cost of such improvements and extensions shall -14- ~ b. deposited in the water fund and applied mward the payment of interest or principal next maturing. Section 11. That the Village of Mount Prospect hereby agrees to carry insurance on the waterworks system of the kinds and in the amounts which are usually carried by private parties opera- ting s~ilar properties, including, without limiting the generalit~ i I of the foregoing, fire, windstorm<insurance, public liability, and i any additional insurance covering such risks as shall be recommen- ded by a competent independent engineer employed for the purpose of making such recommendations, and all moneys received for losses under such insurance policies shall be deposited in the "Water Fund" and used in making good the loss or damage in respect of which they were paid either by repairing the property damaged or replacing the property destroyed, and provision for making good such loss or damage shall be made within ninety days from date of the loss. The payment of premiums for all insurance policies required under the provisions of this section shall be considered a maintenance and operation expense. The proceeds of any and all policies for public liability; shall be paid into the Maintenance and Operation Fund and used in paying theelaims on account of which they were received. Section 18. The Village of Mount Prospect covenants and agrees that so long as any of the bonds herein authorized remain o~tstanding proper books and records and accounts will be kept by the Village of Mount Prospect separate and apart from all other records and accounts, showing correct and complete entries of all transactions of the waterworks system, and that the holders of any of said bonds or any duly authorized agent or agents of such holders shall have the rigbt at any and all reasonable times to inspect the records, accounts and audit relating thereto, and to inspect the sys- tem and all property comprising the system. Said Village further covenants and agrees that itWLll within sixty days following the close of each fia~al year cause an audit of such books and -15- accounts to be made by an independent firm of cert[fied public accountants, showing the receipts and disbursements for and on account of the system, and that such audit will be available for inspection by the holders of any of the bonds. Each such audit, in addition to whatever matters may be thought proper by the accountant to be included therein, shall without limiting the generality of the foregoing, include the following: (a) A statement in detail of the income and expendi- tures of the system for such fiscal year. (b) A balance sheet as of the end of such fiscal year. (c) The accountant's comment regarding the manner in which the village has carried out the requirements of this ordinance, and the accountant's recommen- dations for any changes or improvements in the operation of the system. (d) A list of all the insurance policies in force at the end of the fiscal year, setting out as to each policy the amount of the policy, the risks covered, the name of the insurer and the eJP iration date of the policy. (e) The number of properties connected with the water- works system at the end of the year, the number of meters in operation at the end of the year, and the number of unmetered water customers at the end of the year. (f) A statement showing~e total number of gallons of water pumped and the total number of gallons of water sold to metered water users during such fiscal year. All expense incurred in the making of the audit required by this section shall be regarded and paid as a maintenance and operation expense, and it is further covenanted and agreed that a copy of each such audit shall be furnished to the holder of any of the bonds at his request, and any holder of a bond or bonds authorized under this ordinance shall have the rif!Pt to discuss with the accountant making the audit the contents of the audit and to ask for any additional information he may reasonably require. Section 12. All ordinances, reso lutions 0 r orders, or parts thereof, in conflict with the provisions of this ordinance, are to the extent of such conflict hereby repealed. -16- Section~. This ordinance after its passage by the President and Board of Trustees and approval by the President shall be published once in the Mount Prospect herald , a newspaper published in and having a general circulation in the Village of Mount Prospect, and if within twenty-one days after such publication no petition is filed with the Clerk of said Village, signed by twenty per cent (20%) of the number of voters voting for Village President at the last preceding Village elec- tion asking that the question of constructing the improvements and extensions to the presently owned municipal waterworks system and the issuance of the bonds herein provided for be submitted to the legal voters of this Village, then this ordinance shall be in full force and effect. If within said twenty-one days a petition, signed by the requisite number of legal voters, is filed, then this ordinance shall not become effective until the question of constructing such improvements and extensions and the issuance of such bonds has been submitted to and approved by the legal voters of said Village. day of Passed by the President and Board of Trustees this ~ r:ehrrA ary--, 1949. Vote: (Insert names) Aye: - /;-:".1 feeS' . 81 Y 11 e . . / .,., it:< 117.1' ; 8yck1 /. flqrtw'.y. ~ ~ Art, tf CUld leVe If h , Nay: /\i; n € Approved re bY" Orv , Recorded Fe 61'"'" q J' V ~ / Approved this .P - day of !i 3' , 1949. g~ , 1949. ;::e brw q r y' , 1949. , Attest: ~'l~ ;;;~ f? (i2 President of the Village of Mount Prospect, Cook County, Illinois. Published re"~QI"IJ II, 1949. / -17...